Based on insights from Roubini Global Economics, the Political Risk newsletter provides commentary and updates on high-level country overviews, country ratings and changes in risk over the previous quarter.
This quarter we cast a spotlight on Latin America and ask whether there is an end to the populist axis that has been a feature of the region for some years.
The piece explores the impact of the steep terms-of-trade shock on the continent’s fiscal and external balances. The effects of such have divided in the region, with Venezuela and Brazil particularly hard-hit.
We also consider regional political risks, with a generally improving trend in Asia and a stabilisation in the Commonwealth of Independent States and Caucasus.
Country changes
In Q2 there were two downgrades and one upgrade:
Argentina –high to medium-high (improvement)
Comoros – medium-high to high (deterioration)
Guinea Conakry (very-high to high (improvement)
More information can be found in the attached newsletter.
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